Monthly Interest Rates for Rs. 70 lakh Fixed Deposit

Learn how much you can earn with Rs. 70 lakh fixed deposit.
Rs. 70 lakh FD
4 mins
18 January 2024

Fixed Deposits (FDs) are one of the most common, and the safest investment option in India. As, FD interest is not market linked and remains fixed throughout the tenure. In this article, we will discuss the types of FDs, focusing on the cumulative and non-cumulative options, and how much interest you can earn on a Rs. 70 lakh investment in FD.

What is Fixed Deposit (FD)?

It is a financial instrument offered by many financial institutions where an individual deposits a lump sum amount for a predetermined period at a fixed interest rate. The deposited amount, along with the interest earned, is repaid at the end of the fixed tenure or at regular interval based on the type of FD. Fixed deposits are considered low-risk investments, and the interest rates are typically higher than regular savings accounts.

Types of FD

  1. Cumulative FD: In cumulative FD, the interest is not paid out regularly but is reinvested into the principal amount. The interest compounds over time, and the entire maturity amount, including the principal and accumulated interest, is paid at the end of the tenure.
  2. Non-cumulative FD: The interest earned is paid out at regular intervals, such as monthly, quarterly, half-yearly, or annually. This option suits individuals looking for regular income rather than a lump sum at maturity.

Financial institutions like Bajaj Finance offer both cumulative and non-cumulative FD options. Here’s the table showing how much interest can be earned if invested Rs. 70 lakh in Bajaj Finance FD.

Cumulative FD

Investor category

FD amount

Investment tenure

Interest rate

Total interest payout

Customers below 60 years

Rs. 70 lakh

60 months

8.05% p.a.

Rs. 33,09,127

Senior citizens

Rs. 70 lakh

60 months

8.30% p.a.

Rs. 34,28,944

Non- Cumulative FD

Investor category

FD amount

Investment tenure

Interest rate

Total interest payout

Customers below 60 years

Rs. 70 lakh

60 months

7.77% p.a.

Rs. 27,19,500

Senior citizens

Rs. 70 lakh

60 months

8.00% p.a.

Rs. 28,00,000

Pro tip

Enjoy higher interest rate with Bajaj Finance Digital FD. Unlock returns of up to 8.85% p.a. by investing for 42 months via our website and app.

What is Fixed deposit monthly income scheme?

Fixed deposit monthly income scheme is a financial instrument where an individual invests a lump sum amount with a financial institution for a predetermined period. The interest earned on this investment is then paid out at regular intervals, typically on a monthly basis, which provides a steady income stream.

Benefit of getting monthly interest on your investment

  1. Steady income: Monthly interest offers a regular payout. This makes them ideal for individuals looking for a steady income source. This is particularly beneficial for retirees or those looking to increase their monthly earnings.
  2. Risk mitigation: FD are generally considered low risk investment option. So, investing in FD for a monthly interest income can provide capital preservation and a predictable income stream, offering a sense of financial security.
  3. Liquidity: Monthly payouts can increase liquidity, allowing you to access funds more frequently for unforeseen expenses or investment opportunities.

How much interest can you earn on a Rs. 70 lakh FD?

The interest earned on a Rs. 70 lakh FD depends on various factors, including the type of FD, interest rate, and tenure. To estimate the monthly interest on Rs. 70 lakh FD, let us consider a hypothetical interest rate of 7.5% per annum, so the monthly interest earned would be Rs. 43,750

Here is the table showing how much interest you can earn at different interest rates if you invest Rs. 70 lakh in a FD

 Amount

Interest rate (p.a.)

 Interest per month

Rs. 70 lakh

6%

 Rs. 35,000.00

Rs. 70 lakh

6.50%

 Rs. 37,916.67

Rs. 70 lakh

7%

 Rs. 40,833.33

Rs. 70 lakh

7.50%

 Rs. 43,750.00

Rs. 70 lakh

8%

 Rs. 46,666.67

Rs. 70 lakh

8.50%

 Rs. 49,583.33

Rs. 70 lakh

9%

 Rs. 52,500.00

Rs. 70 lakh

9.50%

 Rs. 55,416.67

Rs. 70 lakh

10.00%

 Rs. 58,333.33

Conclusion

Investing Rs. 70 lakh in fixed deposit for monthly interest can be a reliable investment option. The advantages like regular income and fixed returns, make it a preferred choice for conservative investors. Understanding how much interest can be earned on a FD helps in making informed financial decisions.

Frequently asked questions

What is the Digital FD offered by Bajaj Finance?

Bajaj Finance has launched a new FD variant called "Bajaj Finance Digital FD" for a period of 42 months. Bajaj Finance is providing one of the highest interest rates of up to 8.85% p.a. for senior citizens and for the customers below the age of 60 they are providing up to 8.60% p.a. The Digital FD can be opened and managed only through the Bajaj Finserv website or app.

Can I choose the frequency of Interest Payouts?

Yes, many financial institutions like Bajaj Finance offers flexibility in choosing the frequency of interest payouts, such as monthly, quarterly, half-yearly, or annually.

Are monthly interest rates different for senior citizens?

Yes, some financial institutions like Bajaj Finance offer higher interest rates on their FD for senior citizens. It is advisable to check for age-specific benefits before investing.

Disclaimer

As regards deposit taking activity of Bajaj Finance Ltd (BFL), the viewers may refer to the advertisement in the Indian Express (Mumbai Edition) and Loksatta (Pune Edition) furnished in the application form for soliciting public deposits or refer https://www.bajajfinserv.in/fixed-deposit-archives
The company is having a valid Certificate of Registration dated March 5, 1998 issued by the Reserve Bank of India under section 45 IA of the Reserve Bank of India Act, 1934. However, the RBI does not accept any responsibility or guarantee about the present position as to the financial soundness of the company or for the correctness of any of the statements or representations made or opinions expressed by the company and for repayment of deposits/discharge of the liabilities by the company.

For the FD calculator the actual returns may vary slightly if the Fixed Deposit tenure includes a leap year.